Small business loan schemes for women entrepreneurs – all details

Small business loan schemes for women entrepreneurs: With more than 50% of the entrepreneurs who attended the recent Global entrepreneurship summit 2019 being women, it is clearly evident that women entrepreneurs can be seen every sphere of business world. There were few countries that were represented by only women at the GES that took place in Hyderabad this year.

There are many women who run their families alongside carrying a small and mid-sized business to make their livelihood. To help and give encouragement to more women to take up such self-run businesses, many banks in India have some separate small business loan schemes for women. Few popular schemes of this sort are discussed below:

Small business loan schemes for women entrepreneurs

1. Annapurna scheme:

1Offering bankThis is scheme is offered by state bank of Mysore (Now SBI)
2Purpose of the loanAs the name suggests, this loan is offered to the women who want to set up a food catering business such as selling packed foods, snacks and daily meals etc
3Loan amountThe maximum amount provided under this loan is ₹ 50,000.
4InstallmentsThe loan can be repaid in 36 installments
51st month – No EMIAfter the loan amount is disbursed, EMI is not required to be paid for the 1st month
6Interest rateIt will be decided by the bank as per prevailing market rate
7Collateral securityAssets of the business would acts as collateral security for the loan in addition to a mandatory guarantor

2. Stree Shakti Package:

1Offering bankState bank of India
2Purpose of the loanThis is meant for empowering the women by offering 3 concessions. An enterprise should have more than 50% of its ownership by women to qualify for the scheme
  • The margin will be lowered by 5% as applicable to separate categories.
  • For tiny sector units, No security is required for loans up to ₹ 5 lakh
  • If the loan exceeds ₹ 2 lakhs, interest rate will be lowered by 0.5%

3. Business loan by BMB:

1Offered byBharatiya Mahila Bank ( Now merged into SBI)
2PurposeThe loan is sanctioned to the women entrepreneurs to start  their new businesses in the areas such as retail, manufacturing etc.
3Maximum loanAn amount up to ₹ 20 crores is sanctioned for manufacturing ventures
4Concession in interestConcession is available to the extent of 0.25% on the interest rate
5Collateral free?If you apply under Credit Guarantee Fund Trust for Micro and Small Enterprises (CGTMSE), there is no requirement of collateral security for a loan of up to ₹ 1 crore

4. Shakti:

1Offered byDena Bank
2PurposeLoans under this scheme are sanctioned to women entrepreneurs engaging in manufacturing, agriculture and retails etc.
3Maximum Loan amountLoans of micro credit nature sanction up to ₹ 50,000 while an amount of up to ₹ 20 lakhs is disbursed for retail trade
4Concession in interestConcession is available to the extent of 0.25% on the interest rate

5. Cent Kalyani:

1Offered byCentral Bank of India
2PurposeLoans under this scheme are sanctioned to women for starting a new business or expanding or modifying an existing venture. Women engaged in village and cottage industries, micro, small and medium enterprises, agriculture and allied activities, retail trade, and any government sponsored schemes are eligible for this scheme.
3Maximum loan amountEligible women can avail up to ₹ 1 crore.
4CollateralNo collateral security is required. Also, the loan processing fee is nil

6. Udyogini:

1Offered byPunjab and  Sind  Bank
2PurposeTo provide financial assistance to women entrepreneurs engaged in agriculture, retail and small business enterprises
3Age criteriaApplicant should be of the age group 18 – 45 years
4Income criteriaFamily income should be ₹ 45000

7. Mahila Udyam Nidhi:1

1Offered byPunjab National Bank
2PurposeTo cater the financial needs of women entrepreneurs in small scale sector
3Maximum loanEligible applicant can get up to ₹ 10 lakhs
4TermThe loan is repayable in 10 years
5Special loansSpecial loans are available for running beauty parlors, purchase of auto rickshaws, two-wheelers, cars, day care centers.

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